TUI (TUI1) Q4 2024 earnings summary

Executive summary

• Achieved strong revenue growth of €23.2bn (+12% year-over-year) and underlying EBIT of €1.3bn (+33%), meeting or exceeding FY24 guidance, driven by robust customer demand and successful transformation initiatives.

• All business segments contributed to EBIT growth, with Hotels & Resorts and Cruises delivering record results.

• Customer satisfaction and service quality reached record levels, with high NPS and multiple industry awards.

• Strategic transformation advanced, including asset-right growth, digitalisation, and expansion into new markets, reaffirming mid-term EBIT growth targets of 7-10% CAGR.

• ESG milestones achieved, including significant CO2 reductions, SBTi-approved 2030 targets, and social initiatives.

Financial highlights

• FY24 revenue reached €23.2bn (+12% year-over-year); underlying EBIT was €1.3bn (+33%), with all segments contributing positively.

• Group net income after minorities was €507m, up from €306m in FY23.

• Underlying EPS rose to €1.03 (+€0.29 year-over-year); basic EPS increased to €1.00 from €0.80.

• Net debt reduced to €1.6bn from €2.1bn, with net leverage improved to 0.8x from 1.2x.

• Adjusted free cash flow after dividends was €236m, up from €3m in FY23.

Outlook and guidance

• FY25 revenue expected to grow by 5–10%, with underlying EBIT forecasted to increase by 7–10%, driven by strong bookings and operational excellence.

• Mid-term ambitions reaffirmed: underlying EBIT growth of 7–10% CAGR and net leverage target well below 1.0x.

• Bookings for Winter 2024/25 up 4% (ASP up 5%); Summer 2025 bookings up 7% (ASP up 3%).

• Guidance reflects ongoing transformation costs and stable interest expenses.